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cost of living for specific years according to such factors as
age, size of consumer unit, occupation and location in the
greater New York area to determine that petitioner had a cost of
living-–and, hence, net income-–of $16,766 for 1991 and $17,461
for 1992.
OPINION
The Commissioner’s determinations in the notice of
deficiency are presumed correct, and petitioner bears the burden
of proving that the determinations are in error.3 See Rule
142(a); Welch v. Helvering, 290 U.S. 111, 115 (1933).
We note at the outset that petitioner has no credibility
with respect to the matters on which she testified. Her
testimony was shown on repeated occasions to be false, indicating
to us that she did not consider herself under any particular
obligation to testify truthfully in these proceedings. For
example, she denied absolutely that she, either in a personal or
corporate capacity, received any money for providing escort
services, although many of the 17 individuals identified in
respondent’s notice of deficiency testified credibly that they
paid her for such services. Also, petitioner first denied any
detailed knowledge regarding an eviction proceeding for an
3 Sec. 7491 does not apply to this case because the
examination commenced prior to July 22, 1998, the effective date
of that section. See Internal Revenue Service Restructuring and
Reform Act of 1998, Pub. L. 105-206, sec. 3001(c)(1), 112 Stat.
726.
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